Can Blockchain Transform Insurance?

According to recent market research, blockchain in insurance will expand from $64.5 million of revenue and cost savings in 2018 to $1.4 billion this year -- a compound annual growth rate of 85%!

Blockchain has the power to bring about significant efficiency gains, cost savings, faster payouts and fraud mitigation while allowing for data to be shared in real time among various parties in a trusted and traceable manner.

Insurers are looking to harness the power of blockchain to infuse insurance processes with the three T’s: trustworthiness, transparency and tamper-resistance.

As such, they are attempting to reinvigorate the very roots of the insurance industry.
The application of blockchain for insurance industry makes absolute sense when one considers the following advantages:

Blockchain technology has set the gold standard for trust and fairness. The distributed and immutable nature of blockchain ledgers makes them more transparent and reliable. In addition to inspiring accountability, the consensus algorithm of blockchain technology ensures that all stakeholders, be they policyholders, insurers, agents or brokers, agree on the underlying principles of the policy.